+4
Indicators are measures of the value of a group of assets, used to gauge market performance, such as the stocks of the S&P 500 index, or to assist traders in making buy and sell decisions based on technical indicators like the MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index), and there are also natural indicators like turmeric that determine the acidity or basicity of a substance.
Types of indicators and their uses:
First: Indicators in financial markets
These are measures of the performance of prices of a group of assets listed on the stock exchange, and are used for:
Measuring market or sector performance: such as:
S&P 500 Index (US 500): Tracks the performance of 500 major companies in the United States.
FTSE 100 Index: Measures the performance of 100 leading companies listed on the London Stock Exchange.
Tracks subsets of the market: such as growth stock indices or large-cap value stocks.
Collective investment: Exchange-Traded Funds (ETFs) allow investment in a whole market or a part of it.
Secondly: Technical indicators in trading
Helps traders analyze price movements and identify potential trends, including:
Moving Average Indicator: Determines the current market trend by smoothing out short-term fluctuations.
MACD Indicator: Tracks the difference between two moving averages to determine market trends and potential buy and sell signals.
Relative Strength Index (RSI): Shows overbought or oversold levels to help predict trends.
Fibonacci Indicator: Identifies potential support and resistance levels after a price correction, used to determine order placements.
Write 'done' and I will explain each index individually.
